Georgia EV manufacturers pivot to hybrids as federal incentives end

Overview

Updated Sep 10

Georgia recruited EV manufacturers with billions in tax breaks and a state worker-training program, landing Hyundai, Kia, Rivian, and SK Battery. Then Washington changed the rules.

The Trump administration ended federal EV tax credits, imposed tariffs on battery components and chargers, and loosened emissions rules. EV sales stalled at 8% of new vehicles. SK Battery cut 958 workers, and surviving automakers are shifting to hybrids to keep factories full.

Why it matters

Georgia's EV factories now depend on hybrid sales to stay full after federal tax credits ended.

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Key Indicators

958

Workers laid off at SK Battery

37% of the Commerce plant workforce cut in March 2026

$74B

Manufacturing investment still moving ahead

Across the Southeast, per Southern Alliance for Clean Energy

$4B

Investment canceled or scaled back

Southeast EV and battery projects in past year, per SACE

EV share of US new-vehicle sales

Flat in 2025, below automaker expectations

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Brian Kemp

Governor of Georgia

Sitting governor, champion of the state's EV manufacturing strategy

Stuart Countess

CEO of Kia's West Point assembly plant

Running a flexible line that builds gas, hybrid, and EV drivetrains on demand

Stephanie Valdez-Streaty

Director of industry insights at Cox Automotive

Tracking the auto market's adjustment

Stan Cross

Director at Southern Alliance for Clean Energy

Tracking EV and battery manufacturing investment across the Southeast

Organizations Involved

SK Battery America

Battery manufacturer, subsidiary of South Korea's SK Group

Laid off 958 workers; pursuing energy storage contracts

Operates a $2.6 billion battery plant in Commerce, Georgia.

Hyundai Motor Group Metaplant America

Automaker assembly plant

Pivoting to a hybrid and EV production mix

Hyundai's $8 billion plant near Savannah was built for EVs and now adds hybrids.

Kia Georgia

Automaker assembly plant

Running flexible production across gas, hybrid, and EV drivetrains

West Point plant builds each car to order, switching drivetrain type based on demand.

Southern Alliance for Clean Energy

Nonprofit clean-energy research and advocacy group

Tracking manufacturing investment data across the Southeast

Regional watchdog that compiles EV and battery manufacturing investment figures.

Blue Bird Corporation

Commercial bus manufacturer

Building electric school buses at expanded Georgia facility

Georgia-based bus maker that commercialized electric buses in 2018.

Timeline

January 2022 September 2026

12 events Latest: September 10th, 2026 · 2 months ago Showing 8 of 12

Tap a bar to jump to that date

September 2026
Report documents Georgia EV industry's hybrid pivot
Latest Report

Grist publishes a detailed account of Georgia's EV manufacturing boom stalling and automakers adapting with hybrid production.
September 10th, 2026
Hyundai suppliers reach half of promised hiring
Milestone

HMGMA and its on-site affiliates surpass 50% of the 8,500 jobs promised in exchange for about $2.1 billion in incentives.
September 6th, 2026
March 2026
SK Battery lays off 958 workers
Job Loss

SK Battery America cuts 958 employees, about 37% of its Commerce plant workforce, citing market conditions.
March 6th, 2026
February 2026
Hyundai announces $2.7B expansion, hybrid mix
Corporate

Hyundai adds $2.7 billion investment to reach 500,000 annual units, planning 30% EVs and 70% hybrid or gas.
February 2026
December 2025
Ford cancels fully electric F-150 Lightning
Corporate

Ford announces it will not proceed with the fully electric version of its flagship pickup, which used SK Battery cells.
December 15th, 2025
September 2025
SACE report finds EV project cancellations
Report

Southern Alliance for Clean Energy says projects have been canceled or paused, with a few hundred jobs retracted in Georgia.
September 16th, 2025
June 2025
Immigration raid hits Hyundai/LG battery plant
Event

Federal agents arrest more than 400 people, mostly South Korean workers, at a Hyundai/LG battery plant under construction.
June 2025
March 2025
Rivian breaks ground near Atlanta
Milestone

Rivian starts construction on its manufacturing plant, another major Georgia EV investment.
March 1st, 2025
January 2024
Kia begins EV production at West Point
Milestone

Kia starts building electric vehicles at its Georgia plant, one of two major EV production launches in the state.
January 1st, 2024
2023
Blue Bird expands electric bus factory
Investment

The Georgia bus maker opens an expanded facility dedicated to electric bus production.
2023
May 2022
Hyundai announces $8B Georgia plant deal
Investment

Governor Brian Kemp announces an $8 billion Hyundai Metaplant near Savannah with about 14,500 promised jobs including suppliers.
May 20th, 2022
January 2022
SK Battery opens $2.6B plant
Milestone

The Korean battery maker opens its Commerce, Georgia plant, later a key Ford F-150 Lightning supplier.
January 15th, 2022

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Scenarios

Hybrids keep Georgia's EV plants running at scale

Likely Resolves by End of 2027

Discussed by: Cox Automotive's Stephanie Valdez-Streaty and factory executives at Hyundai and Kia

Hyundai plans a sales mix of about 30% EVs and 70% hybrids and gas cars, with a $2.7 billion expansion toward 500,000 units a year. Kia's West Point line already switches between drivetrains to match demand. If hybrid sales hold, the plants stay busy through 2027 and layoffs stop.

Congress restores EV incentives, electric production ramps back up

Possible Resolves by Q2 2027

Discussed by: Analysts tracking policy shifts after the 2026 midterm elections

A future Congress could restore tax credits and tighten emissions rules, shifting demand back toward fully electric vehicles. Hyundai's flexible line already can adjust drivetrain mix, and SK Battery could rehire. The trigger is the 2026 midterm elections and subsequent legislative action.

SK Battery shifts production toward grid storage, EV share shrinks

Possible Resolves by End of 2027

Discussed by: SK Battery America statements and SACE analysis

SK Battery has said it is pursuing the battery electric storage system market. If EV battery demand stays flat, the company could convert more of its Commerce plant toward storage cells for the electrical grid. The plant would survive, but its role in the EV supply chain would shrink.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

2009-2012

Solyndra and the US solar manufacturing cycle (2009-2012)

The Department of Energy guaranteed Solyndra $535 million in loans in 2009 to expand its solar panel plant in Fremont, California. The company filed for bankruptcy in 2011 after Chinese competitors undercut prices and policy support wavered.

Then

Solyndra shut down, its 1,100 employees lost their jobs, and the loan became a national political flashpoint.

Now

The episode became a cautionary tale about clean-energy manufacturing that depends on federal policy support.

Why this matters now

Georgia's EV manufacturing bet faces the same structural risk: billions in incentives tied to a policy environment that can change.

2000-2009

Detroit's SUV bet and the 2008 financial crisis (2000-2009)

Through the early 2000s, GM, Ford, and Chrysler relied on trucks and SUVs as their main profit source. When fuel prices spiked in 2008, buyers switched to smaller cars, stranding Detroit's product lineup.

Then

GM and Chrysler filed for bankruptcy; the federal government provided bailouts to restructure the industry.

Now

Automakers now design flexible assembly lines that can switch between drivetrains as demand shifts.

Why this matters now

Georgia's EV plants are learning the same lesson in reverse: full EV production was the bet, and consumer demand did not follow. Flexible plants that can build hybrids are the ones surviving.

1983-2005

The Southern auto plant boom (1980s-2000s)

Southern states competed with tax breaks and worker training to attract foreign auto plants, starting with Nissan in Tennessee (1983), Toyota in Kentucky (1985), and BMW in South Carolina (1992). The strategy built a regional auto manufacturing corridor.

Then

The South became the nation's car-building center, creating thousands of jobs in supplier networks.

Now

States learned that auto manufacturing follows incentives, and plants adjust to market and policy conditions beyond state control.

Why this matters now

Georgia used the same playbook for EVs, and now faces the reality that federal policy, not just state incentives, determines whether the plants thrive.